There is a fight going on in the United States. Will the federal government raise taxes on the American people to pay for the increase in federal spending from 20% of GDP to 25% of GDP in Obama's first three years? Or will the American people wrestle federal spending back down towards the 20% of GDP range that has been the norm for 30 years. Will taxes go up to pay for Obama's supersized government? Or will the size and cost of government come down? Does America become a European welfare state or return to be America?
This year, 2011, followed the decisive midterm elections of 2010 in which voters defeated the Democrats to elect a majority of congressmen (238) who have signed a commitment to the American people that they would oppose and vote against any and all taxes. That was round one in the fight. It was also the end of Obama's two-year spending splurge known as "Stimulus One". The Democrats wanted to continue stimulus spending and to increase taxes permanently to pay for what they hoped would be the "new normal" higher tax and spending burden.
The Republican-led House of Representatives said no. The House passed the Paul Ryan budget that would reduce government spending by $6tn over the next decade – even this is only a start, as Obama's budget has the federal government racking up more than $10tn in debt over the next ten years. Obama and the Republicans agreed in early August to cut about $1tn and to establish a "supercommittee" to recommend $1.2tn in additional spending reductions. Continue reading and comment » | Grover Norquist | Tuesday, November 22, 2011